Skip to main content

Nvidia loses $500 billion in value and its 'most valuable company' crown

Nvidia stock

Nvidia has been riding high thanks to AI, the current center of attention in the tech industry. The chipmaker's silicon is among the only such hardware that can provide the necessary processing power to enable resource-intensive commercial AI models.

Because of this, Nvidia has been sort of a bellwether for the AI industry — rising sky high as an indication of AI's extreme rate of growth.

Over the past week, however, Nvidia has taken a huge tumble on the stock market, and has lost around $500 billion in value.

SEE ALSO: AI giants Microsoft, OpenAI, and Nvidia investigated for possible antitrust violations

This is reverberating around Wall Street because Nvidia has been making shareholders rich of late. On June 18, for example, Nvidia surpassed both Microsoft and Apple to suddenly become the world's most valuable company with a market capitalization of $3.34 trillion.

Now, just one week later, Nvidia is worth around $2.9 trillion, surrendering its most valuable company crown to Microsoft, valued at $3.3 trillion. The company now ranks third behind Apple, which is also worth over $3 trillion.

Nvidia is still doing just fine of course. And it's likely to still be raking in plenty of revenue thanks to AI-related patronage from the likes of Elon Musk, who is reportedly building an Nvidia-based "supercomputer" via his AI company xAI. However, this recent downturn on the stock market might show that investors are sending a message that they're not so bullish on the AI industry's monumental claims of how they will change the world with their technology.

As multiple outlets have reported, AI companies have made big promises, but so far have had very little to show for it when it comes to actual meaningful change in the industry's AI claimed to soon disrupt. On top of that, studies have found AI to be a massive energy and resource drain, which will certainly give at least some AI backers second thoughts about where the industry is headed.



from Mashable https://ift.tt/pyLhO2i
https://ift.tt/Imxb3RS
Labels:

Comments

Post a Comment

Popular posts from this blog

When the clocks change for Daylight Saving Time, and why we do it at all

The clocks on our smartphones do something bizarre twice a year: One day in the spring, they jump ahead an hour, and our alarms go off an hour sooner. We wake up bleary-eyed and confused until we remember what just happened. Afterward, "Daylight Saving Time" becomes the norm for about eight months (And yes, it's called "Daylight Saving" not "Daylight Savings." I don't make the rules). Then, in the fall, the opposite happens. Our clocks set themselves back an hour, and we wake up refreshed, if a little uneasy.  Mild chaos ensues at both annual clock changes. What feels like an abrupt and drastic lengthening or shortening of the day causes time itself to seem fictional. Babies and dogs demand that their old sleep and feeding habits remain unchanged. And more consequential effects — for better or worse — may be involved as well (more on which in a minute). Changing our clocks is an all-out attack on our perception of time as an immutable law of ...
Post a Comment
Read more

A speeding black hole is birthing baby stars across light years

Astronomers think they have discovered a supermassive black hole traveling away from its home galaxy at 4 million mph — so fast it's not doing what it's notorious for: sucking light out of the universe. Quite the opposite, possibly. Rather than ripping stars to shreds and swallowing up every morsel, this black hole is believed to be fostering new star formation, leaving a trail of newborn stars stretching 200,000 light-years through space . Pieter van Dokkum, an astronomy professor at Yale University, said as the black hole rams into gas, it seems to trigger a narrow corridor of new stars, where the gas has a chance to cool. How exactly it works, though, isn't known, said van Dokkum, who led research on the phenomenon captured by NASA 's Hubble Space Telescope accidentally. A paper on the findings was published last week in The Astrophysical Journal Letters . “What we’re seeing is the aftermath," he said in a statement . "Like the wake behind a ship, we’r...
Post a Comment
Read more